This post explains the difference between them.
What is the difference between two approaches?
The difference is big. One paginates using offset, and the other paginates using cursors. There are multiple pros/cons of both approaches. For example, offset pagination allows you to jump to any page, while in Cursor-based pagination, you can only jump into the next/previous page.
There is also a substantial difference in the implementation underneath. The Offset will very likely have to load all the records from the first page to the page you want to get. There are techniques to avoid this.
For more pros and cons I suggest reading the article.
Best use-case for a cursor based pagination?
If you're using a relational Database and have millions of records. Querying high Offset will probably take a lot of time/timeout, while cursor pagination will be more performant.
Can cursor based pagination go to a specific page?
No, this is one of the disadvantages of the approach.
Can cursor based pagination go back to the previous page?
It's a very common technique to provide two cursors as a response, one containing the previous page and the other with the next page. If that's the case, you can go to the previous page. Otherwise, you cannot.
Are there any performance differences between the two?
Yes! see my comment above.